SVN Spring Conference: Small is Beautiful vs. Scale Matters

Friday night ended with a bang as Michelle Long of the Business Alliance for Local Living Economies (BALLE) and Jay Coen Gilbert of B Lab engaged in a dialog on the issue of whether going to scale or staying local is more effective in building a sustainable economy.

Jay began with a humorous, but earnest, argument that ‘Bigger is Better’. He used examples to illustrate how scale can effect the whole on a greater level. He cited how employees of Wal-Mart, who had been discriminated against, came together to sue the company. He pointed out how as China invests in scaling solar the price per kilowatt will come under $1. And he pointed to one of the biggest challenges, and opportunities, for effecting change at scale – finding innovations that can help the 3 billion people living on less than $2 a day. He argued that these are solutions and challenges of such scale, that small, local initiatives could not effectively address them.

Michelle countered saying a local living economy is scalable and so to assume that “local” means “small” is incorrect. She also pointed out that ownership and stakeholder involvement matter and that a business should work with its peers and community. Being in business and having a sustainable community are about getting people to solve the problems which are in their own communities, enabling collaborations and getting rid of barriers.

A local business gives 2 ½ times more to the community than other businesses and is more likely to be accountable to its environmental impact, Michelle asserted. Humans are hardwired to work well in a small group dynamic, she insisted, while larger groups make the individual invisible.

In the end it is not scale matters or small is beautiful but a balance and combination of the two. This community conversation provided much fodder for continued discussions into the evening for many.